Oil prices rose on Tuesday as traders assessed the impact of a drone attack on Kazakhstan's main oil export route, while talks to end the war in Ukraine kept traders cautious as they could boost Russian supplies.
Brent crude futures rose 61 cents to $75.83 a barrel by 1:38 p.m. EST, while U.S. West Texas Intermediate crude rose $1.10, or 1.6%, to $71.84 a barrel, tracking gains Brent posted on Monday, when the U.S. contract traded without settlement due to a holiday.
Brent rose 48 cents in the previous session after Ukrainian drones attacked a pumping station in Russia on the Caspian Pipeline Consortium pipeline, which carries crude from Kazakhstan to world markets.
Kazakhstan's oil exports could drop by as much as 30% for up to two months as a result of the drone attack, which caused "serious damage," Transneft said. That would be equivalent to a global oil supply cut of 380,000 barrels per day, according to Reuters calculations.
"Brent already benefited yesterday from the CPC supply disruption, but overall it will depend on how long and how big the disruption is," said UBS analyst Giovanni Staunovo.
The oil market suffered another supply shock on Tuesday as Russia's Black Sea port of Novorossiisk halted loadings due to a storm, two sources familiar with the matter said.
Exports from the port were revised up by 0.24 million metric tons from the original plan to 2.25 million tons, or about 590,000 barrels per day, the sources said on Monday.(Newsmaker23)
Source: Investing.com
